Ohio Sen. Huffman Wants to Allow a Prevailing Wage Opt Out
From Cleveland.com
Ohio cities could stop paying prevailing wage to construction workers under proposed bill
COLUMBUS, Ohio -- Local governments could opt out of paying Ohio's prevailing wage on public construction projects under a new proposal from state Sen. Matt Huffman.
State law requires counties, cities, villages and townships to pay minimum wages and benefits, called prevailing wages, to construction workers on projects exceeding a certain cost.
Huffman, a Lima Republican, said the prevailing wage is higher than the market rate in many parts of the state, especially rural areas. If local governments could pay the market rate, Huffman said, they would save money.
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The Affiliated Construction Trades of Ohio, which represents Ohio's skilled trades, opposes the idea.
Executive Director Matt Szollosi said Huffman's proposal would cause drive more work to out of state contractors who pay their employees less. Szollosi said that would drive down participation in trade apprenticeship programs, are funded with a portion of hourly pay.
Labor costs are 23 percent of overall costs so the notion that you can elicit significant savings on the labor side by cutting wages and benefits for workers is unfounded," Szollosi said.
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